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Gemco

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Gemco
IndustryRetail
Founded1959
Defunct1986
FateLiquidation
SuccessorTarget
HeadquartersBuena Park, California
Productsgroceries, clothing, footwear, housewares, sporting goods, hardware, toys, electronics
ParentLucky Stores

Gemco was an American chain of membership department stores that was owned by San Leandro-based Lucky Stores, a California supermarket company which eventually became part of Albertsons. Gemco operated from 1959 until closing in late 1986. A number of the west coast stores leases were sold to Target which fueled their entry into California. Gemco had a version called Memco, also owned by Lucky Stores, that operated stores in the Chicago, Illinois, and Washington, D.C., areas.

History

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Gemco was established in Anaheim, California, in October 1959. A year later, the company was purchased by Lucky Stores,[1] which added the supermarket element and expanded Gemco into a chain. Business and profitability continued to be healthy for over 20 years, until a series of unsuccessful leveraged takeover attempts from other companies were made on its parent company, Lucky Stores. Lucky, to avoid such hostile takeover attempts, eventually decided it was best to liquidate Gemco entirely.[2] This liquidation occurred from September 1986 to November 1986. Target opened stores in most of the former Gemco locations by the fall of 1987, having remodeled many of Gemco's former prime business locations into Target's bright red-and-white trade dress.[2]

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"GEMCO" never was an acronym, despite rumors to the contrary (e.g., that it stood for such terms as "Government Employees' Merchandising Company").[3] The letters were simply an easily pronounced and remembered name. Brown (with tan accents) was Gemco's original main exterior background color, and the letters "GEMCO" were originally in red. Throughout the late 1960s and 1970s, the logo consisted of translucent, serifed capital letters on a horizontal dark blue oval. An early 1980s redesign changed the chain's main exterior background color to blue (with light blue accenting), and its letter coloring in its logo to white (adding a yellow diamond on top of the "M").[citation needed]

Offerings and innovations

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An early example of what would become a hypermarket, Gemco offered one-stop shopping for everything from garden supplies to groceries, and regular department store offerings as well. Its concessionaires included gasoline (located outside and away from the front entrance) and jewelry. One innovation the store offered — found nowhere else at the time — was the storing and delivery of already purchased groceries when the member was finished shopping the rest of the store. A numbered plastic card was placed on the cart(s) and its match was given to the customer. When the member was done shopping and ready to leave the premises, the member merely needed to drive to the side of the store where the plastic card was given to the security guard. The guard would call for a courtesy clerk to deliver the groceries, and the clerk would load them into the member's vehicle. Niceties such as this won many new members to Gemco, and created repeat business.[citation needed]

Gemco was a preferred employer in many of the locations in which it did business. Unlike many other "discount" chains such as Payless, Gemco employed union members of the UFCW (United Food and Commercial Workers).[citation needed]

Gemco also offered a credit department to help increase sales. It was particularly busy each year during the Christmas shopping period.[citation needed]

On a trial basis, a few Gemco stores offered free babysitting while an adult was shopping in the store. The adult would drop off the child in the designated area of the store and would be given a ticket with a number on it. When done shopping they would give the cashier the ticket, who in return called the babysitting dept and a clerk would bring the child out to the parent. The parent could also pick the child up directly as well. After about one year of trial Gemco ceased operation of this trial. California law required a caregiver in a commercial operation to be licensed and insured as a daycare.[citation needed]

Gemco also started the Gemco Charitable and Scholarship Foundation, a California corporation, in November 1959. The foundation held annual scholarship competitions in the areas where Gemco had stores. Each competition placed competitors, who were high school seniors selected by their schools, in a panel discussion format with judges questioning them about their views on discussion topics and requiring that they defend their positions. Several rounds of discussions would be judged to determine the winners. Winners were awarded one-time scholarships of up to $1,500.00 based on the judges' scoring of their performance, with lesser amounts being awarded to runners-up. The foundation's corporate rights have been suspended in California.[4]

Gemco members received a monthly catalog, the Gemco Courier, containing Saturday Evening Post-inspired cover art.[citation needed]

Memco

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The East Coast stores, located in the Washington, D.C., area, were called Memco instead of Gemco to avoid confusion with an already existing area chain called GEM. Memco stores had a blue color scheme on its walls and signage. Memco honored Gemco membership cards, and vice versa. Sometimes when an advertisement photo showed a membership card, the first letter in the logo was concealed, so the same picture could be used in both Gemco and Memco ads.

Memco entered the Washington, D.C., market in 1969 with 100,000-square-foot (9,300 m2) stores on Little River Turnpike at Braddock Road in Annandale, Virginia, and on Allentown Road in Camp Springs, Maryland.[5] When the chain announced its exit from the market in December 1982, there were 13 stores (including two in Richmond, Virginia, one in Reston, Virginia, and two in the Baltimore area), Columbia, Maryland, and Greenbelt, Maryland, stores had opened just two months earlier, and a 14th store under construction in Burke, Virginia, a suburb of Washington, D.C.[6] The closings idled 1,200 retail workers.[7] All of those locations were converted to Bradlees upon Gemco's closing.[8][9] Several of the former locations are currently open as Home Depot or were occupied by Kmart before closing.[citation needed] Home Depot near Fairfax Circle in Fairfax, Virginia, used to be a Memco.[citation needed]

Memco also had stores in the suburbs of Chicago, Illinois, which opened in Niles and Arlington Heights in August 1972[10] and in Lombard in August 1973.[11] These three stores were not very successful and were converted into Eagle Family Centers in October 1977.[12] Buildings for two of these stores were later occupied by the Roundy's-owned Pick 'n Save discount warehouse stores in May 1982.[13]

Fictitious town

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The fictitious town of Gemco, California, is located in Van Nuys, California, near Woodman Avenue and Saticoy Street. It appeared on a map in the 1980s, possibly as a copyright trap, and is now in many mapping databases. It actually was the shorthand name used by the Southern Pacific Railroad to refer to the General Motors Van Nuys Assembly plant.[citation needed]

References

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  1. ^ "Supermarket, Department Store to 'Wed'". Los Angeles Times. December 29, 1960. p. B10. ProQuest 167806820.
  2. ^ a b Gellene, Denise (October 10, 1986). "Lucky to Close Gemco, Sell Most Stores to Dayton Hudson". Los Angeles Times.
  3. ^ "Streetwise: Neighborhood Shops". outslidelands.org.
  4. ^ http://kepler.sos.ca.gov/ Archived 2015-03-15 at the Wayback Machine Corporation no. C0386794.
  5. ^ "Chain to Open One-Stop Stores Here". The Washington Post and Times-Herald. December 19, 1969. p. D8. ProQuest 143677177.
  6. ^ Knight, Jerry (December 28, 1982). "Washington-Area Memco Stores to Shut in January: Area Memco Stores to Close Doors, Idling 2,000". Washington Post. p. A1. ProQuest 147384673.
  7. ^ Pyatt, Rudolph A. Jr. (January 12, 1983). "With Memco Leaving, Competition Heats Up: With Memco Stores Closing, Retail Competition Heats Up". Washington Post. p. F1. ProQuest 138130376.
  8. ^ Pyatt, Rudolph A. Jr. (January 5, 1983). "Retailers Intensify Fight Here: Memco Closings May Show Larger D.C. Area Problem". Washington Post. p. D1. ProQuest 138082036.
  9. ^ "Bradlees to expand in D.C." Nashua Telegraph. Vol. 4, no. 254. December 28, 1982. p. 7.
  10. ^ "Memco ad". Chicago Tribune. August 16, 1972. p. 19. ProQuest 169205074. Grand Opening Thursday At 10 A.M. In Niles & Arlington Heights
  11. ^ "Memco ad". Chicago Tribune. August 1, 1973. p. 10. ProQuest 170999951. Memco Opens Today At 10 A.M. In Lombard
  12. ^ Lazarus, George (August 9, 1977). "Filtertek: tomorrow's household word?". Chicago Tribune. p. C9. ProQuest 169604314. Memcos to become Eagles. Lucky Stores, will convert its three Chicago-area Memco stores to Eagle Family Centers by early October. The Memco outlets, in Lombard, Arlington Heights, and Niles, "haven't been successful enough in Chicago," a Lucky executive said, confirming the planned conversion. Since Memco shoppers have paid a $1 membership fee, "there will be a provision to credit them for that amount," the Lucky official said. The Memco units here, which have carried both foods and nonfoods, will become more grocery oriented under the Eagle Family Center banner. There are now 34 Eagle stores a supermarket chain operating in the Chicago area.
  13. ^ Lazarus, George (March 9, 1982). "Foote, Cone spreads its creative authority". Chicago Tribune. p. B6. ProQuest 172596999. Roundy's lines up 3 sites here. Roundy's, the Wauwatosa, grocery wholesaler, has lined up the first three Chicago area locations for its Pick'n Save discount warehouse stores. Opening in May are Pick'n Saves in Lombard (at Finley and Roosevelt) and in Arlington Heights (Rand and Willow). Both are locations occupying space in previous Memco sites. Memco was a combination grocery-dry goods business of Lucky Stores Eagle operation...
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